The first month of the calendar year, along with its pleasures, has evaporated. Now the priorities are the activities and operations that drive the automotive value chain’s businesses and professions. Every good wish to each of you for a successful and safe 2019. It is clear that all the omens point to it being busy!
I enjoyed a family Christmas and New Year. At the back of my mind, however, was the submission to the Queensland Transport and Public Works Parliament Committee relating to Queensland Civil and Administrative Tribunal (QCAT) and Other Legislation Amendment Bill. These included the Fair Trading Act (FT)and the Motor Dealers and Chattel Auctioneers Act 2014 (MDCA Act).
Advocacy
Briefly, the Bill’s intent confers QCAT with jurisdiction for actions for an amount or value of other relief of not more than $100,000; the FT Act in relation to the Australian Consumer Law (ACL) consumer guarantees for the supply of goods or services, where the action relates to a motor vehicle (including a caravan or a motorhome); and the MDCA Act pertaining to statutory warranties for used motor vehicles (including motorhomes but not caravans). In a nutshell, they focus on achieving improved fairness and providing greater protection for Queensland’s consumers buying new or used vehicles by enabling access to QCAT for statutory resolution for disputed mechanical, technical or equipment defects or manufacturing failures not exceeding $100,000.
The underlying message of the legislative amendments is that the automotive value chain’s consumer retail service and explanation of the ACL is failing some consumers. It is clear that this is so – the Attorney General and Minister for Justice Yvette D’ath’s speech when introducing the legislation detailed examples.
Our Automotive Remarketing Division and Chairman Peter Dever, prior to the festive season, considered the proposed amendments and provided views which contributed significantly to the development of the submission. As opposed to the legal remedies proposed in the legislation, the division suggested two proactive solutions. The first, the proposed legislative framework be accompanied by measures that raise the standard of the competencies required to hold a motor dealer’s license or to comply with the requirements for registration as a motor dealer salesperson. This should include education in the ACL obligations, responsibilities and remedies and should be a stand-alone compulsory prerequisite to qualify for a motor vehicles dealer license or to obtain registration as motor vehicles salesperson in Queensland.
The second is a mandatory prerequisite for applicants seeking a motor dealer’s license to complete a traineeship/internship to be served as a registered salesperson under the supervision of a licensed motor dealer to develop competencies in all aspects of motor vehicle trading. This has the benefit of enhancing practical understanding of a motor dealer’s obligation in relation to statutory consumer protection and fairness. It is the Association’s view that these two remedies should mitigate the number of unresolved disputes that would require arbitration by QCAT. Peter and I will attend the Parliamentary Committee’s Hearings and will give evidence supporting our submission.
In the coming days there’ll be a scheduled meeting with the Office of Fair Trading. The intention is to discuss with Officers the suggested remedies to assist in the redress of disputes arising from the purchase of a new or used motor vehicles. Our submission is on the website for member’s perusal.
Lemon Laws
In the coming year, the expectation is that the Legislative and Governance Forum on Consumer Affairs (CAF) – which consists of all Commonwealth, State, Territory and New Zealand Ministers responsible for fair trading and consumer protection laws – will consider draft ‘lemon laws’. There will be the opportunity to submit the Association’s views on any draft proposals. As an interim measure, it may be wise for industry, including the automotive value chain, to focus on customer relationship management to offset negative perceptions of the automotive industry stemming from the Hayne Commission of Inquiry, The Australian Securities and Investment Commission and the QCAT and other legislation amendments.
Consumer relationship management
Here at MTA Queensland, we take pride in putting members first, and for consumer issues to be handled professionally, courteously and efficiently. Generally, this was not my Christmas/New Year retail experience either in-store or on-line. Instead, it was is one of general indifference. With one or two exceptions, professional consumer service was rare, with service staff more interested in the content on point of sale systems, fussing with products or too busy with a customer to courteously acknowledge others patiently waiting.
The on-line experience was performing telephone digital maneuvers ultimately to speak with salespersons unable to answer product description, or brand differentiations. Seemingly, the paucity of consumer service is a common complaint. A prominent local journalist, writing in the State’s leading daily newspaper, was critical of the service and the wait staff at the city’s leading restaurants. A New Year’s resolution should be for all retail sectors to improve consumer service.
Federal Budget
The 2019-20 Federal Budget is on Tuesday, 2 April and, as widely anticipated, followed by the general election. In keeping with long-held practice, a prebudget submission outlining the automotive value chain’s priorities for the coming financial year will be forwarded to the Commonwealth Treasury for consideration in preparing the budget.
When the election is called, a further submission will be sent to the Leaders of the major political parties drawing attention to policy positions for the motor trades.
Service to Members
An exemplar of service to members, as well as knowledge of motor trades’ employment relations, is MTA Queensland’s Industrial Relations Manager Ted Kowalski. In January this year, Ted clocked up 35 years of service, advising and guiding members on a wide range of employment and industrial relations matters. He is the longest-serving employee in the Association’s history and his motor trade industrial relations knowledge is without peer.
Two complex issues that he had to transition through stand out like beacons. They were the introduction in 2009 of the Fair Work Act to reform the nation’s industrial relations system and the Award Modernisation (1996-2010). The latter resulted in two awards for the motor trades – the Vehicle Manufacturing Repair Services and Retail Award and the Clerks Private Sector Award replacing a number of state awards. Congratulations Ted on the milestone, and thank you for your dedicated service to members and your valued and genial contribution to the corporate office.
Area Manager (North Qld)
The popular Divisional Executive (North Queensland based) Andy O’Hearn has resigned to take employment elsewhere to enable him to spend quality time with his children. Andy has been working with north and central Queensland members since 2009 and over that time was the conduit for information and policy to and from the corporate office. Although he will be missed, he remains in the industry. We wish Andy the best with his new employment.
Ray Bolton is joining the MTA Queensland team, and will assume the role as the new Area Manager following the two-week handover by Andy.
Finally
A responsibility I enjoy is interacting with Industry Division members on their diverse trade issues and policies.
Preparations are underway for the first round of Divisional meetings for the 2019 calendar year. Whilst the focus will be on industry issues, there will be discussion on policy priorities for the up-coming election.
Until March, take care and stay safe.